After hitting a new ATH on April 1, Polkadot was consolidating on the charts at the time of writing. In fact, the price of DOT has fallen over 10% recently, with increasing trading volume suggesting that DOT may soon sell out on the spot exchanges. In fact, traders expect the price to drop to March 2021 levels, well below $ 30.
In addition, according to the sentiment of traders on the exchanges, Tether’s launch on DOT was not impressive, which further supported the short-term price correction. While Tether is central to the cryptocurrency market, the launch of DOT is not as well received as expected.
The above-mentioned increase in trading volume may be due to increased sales on the network and cannot be entirely attributed to Tether’s announcement. This despite the fact that DOT is expected to host more DeFi applications on its network in the long run due to the launch of Tether.
The increasing liquidity seemed to indicate a price correction due to the attached liquidity supply curve.
Another top altcoin consolidation right now is XLM. Since early 2021, XLM has peaked at $ 0.54, and as for the price rally, with trading volume on the exchanges falling by nearly 36%, XLM’s price rally could be over. Ergo, the altcoin could be in the buy zone right now, especially since the crypto remained largely between $ 0.35 and $ 0.45 due to the price movement from February to March 2021.
In the short term, the ROI of XLM was as follows:
Based on the attached chart, the short-term ROI for XLM over a period of more than 30 days is in the double digits. XLM HODLers are profitable every 30-90 days before the consolidation begins.
Similarly, in the case of TRX, the price has consolidated every 40-60 days. Consolidation has started with assets trading at $ 0.119 at press time. With the Alt being over 60% off its ATH and seeing the decline in 24-hour volume, the Altcoin could soon be the buy zone as well.
Like TRX, XLM, and DOT before, FIL is also in the buy zone for retailers at $ 148.52. After a 40% drop from $ 232 on April 1, 2021, HODLers could now pile up for the next phase of the FIL price cycle. FIL and TRX are both among the altcoins that are consolidated every 40-60 days.
With top altcoins seeing double-digit gains in the buy zone over the past two weeks, this may be the ideal time for retailers to buy on spot exchanges and increase demand in preparation for the second phase of the altcoin price rally.
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